Forex - NZD/USD slips lower in cautious trade

The New Zealand dollar slipped lower against its U.S. counterpart on Monday, as the greenback remained supported by expectations for the Federal Reserve to scale back its bond-buying program before the year end. 

NZD/USD hit 0.7714 during late Asian trade, the session low; the pair subsequently consolidated at 0.7725, falling 0.21%. 

The pair was likely to find support at 0.7700, the low of June 21 and a multi-month low and resistance at 0.7807, the high if June 21. 

The greenback strengthened broadly after Fed Chairman Ben Bernanke said last Wednesday that the bank could begin tapering asset purchases by the end of 2013 if the economy continues to pick up. 

Meanwhile, investors remained cautious after the International Monetary Fund on Friday said it would not suspend Greek funding and said Athens has until July to come up with an agreement on its bailout program.

The comments came amid concerns over recent delays in the privatization plan Greece agreed to last year, which could threaten the country’s performance on economic reforms needed to secure bailout funding. 

The kiwi was higher against the Australian dollar with AUD/NZD sliding 0.32%, to hit 1.1864. 

Later in the day, the Ifo institute was to release a report on German business climate.